Every loan or bank interest for non-tading purpose should be taken into consideration in CIT, does it mean:purpose whether trading or non-trading is not a restriction for calculation in CIT? It is ok whether purpose is trading or not.
Ask the Tutor ACCA TX-UK
corporation tax
What do you mean by CIT?
corporation tax :)
Interest payable does indeed achieve tax relief on the CT computation it is just a question of where!
Interest payable on a trading loan is deducted in deriving the trading income assessment whereas interest payable on a non trading loan is deducted from interest receivable.
thanks
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